CSBS and NSAA Issues Guidance on Cryptocurrencies


CSBS and NSAA Issues Guidance on Cryptocurrencies

ForexMinute.com – The Conference of State Bank Supervisors (CSBS), through its recently launched Emerging Payments Task Force, and the North American Securities Administrators, presented specific guidance for investors and customers who use cryptocurrencies like Bitcoin, Litecoin and others.


The Model State Consumer and Investor Guidance was issues in response to the various risks involved with virtual currencies, especially when it comes to investments. The issued guidance will act as a cautionary to inform investors about the potential losses associated with Bitcoin and other virtual currencies. The guidance also reminds investors of the regulations involved with virtual currency transactions or investments in the states. Following are the few points that CSBS and NSAA have specifically noted for cryptocurrency investors:

• Do your homework.
• Virtual currencies and companies dealing in virtual currencies may or may not be regulated.
• Virtual currencies can be stolen or otherwise subject to cybercrime.
• Virtual currencies are volatile in value.
• Virtual currencies have been connected to criminal activities.
• Virtual currency transactions may be taxable.

What is Emerging Payment Task Force?
Almost two months back, the state finance regulators launched Emerging Payment Task Force, with valuable inputs from CSBS. The aim behind launching this force was to monitor and report about the changing payment trades. As per stated in the join press release issued by CSBS and NASAA last week, “The Task Force will seek to identify opportunities for a coordinated state approach to payments issues as well as promote compliance, security, and protection for consumers.”

To contact the reporter of the story: Yashu Gola at yashu@forexminute.com

Subscribe to the two-month free subscription of our daily newsletter by visiting www.forexminute.com/newsletter